Breaking News! Amazon requires insurance at multiple sites

Today, Amazon sellers collectively received a notice that they also need to purchase insurance on the European and Canadian sites. Currently, Amazon has announced the sales thresholds for each site to purchase insurance, and a large number of accounts have been covered, causing an uproar in the industry.

Insurance is required for European and Canadian stations

Three years ago, Amazon launched commercial liability insurance on its US site, requiring sellers to purchase insurance within 30 days if their total sales revenue exceeds $10,000 in any month. Now this trend has spread to other sites.

In the morning, many sellers received notifications from European and Canadian sites. Amazon stated that to sell goods on the platform, once the seller's total transaction revenue in any month exceeds the sales threshold that requires insurance, they must obtain and maintain valid commercial liability insurance.

For claims less than €1,000 or £1,000, Amazon will compensate the buyer directly if it is proven that the loss or damage was caused by a defective product. Amazon will not seek compensation from the seller or its insurance provider as long as the seller has proof of valid insurance and complies with the policy. For claims greater than €1,000 or £1,000, Amazon or the platform's third-party management service provider Sedgwick will work with the seller to verify the claim and compensate the buyer.

In Canada, the limit amount for this claim is US$1,000.

Amazon's detailed documentation gives the corresponding insurance sales thresholds for each site:

Canada: Monthly sales exceeding 10,000 Canadian dollars

Germany, France, Italy, Spain, Netherlands: 5,000 Euros

UK: £4,000

Sweden: 50,000 SEK

Next, if the seller already has valid commercial liability insurance purchased in the United States and sells goods in the EU or UK, they need to contact the insurance provider to confirm whether the insurance policy covers claims made in the EU and the UK. If new insurance needs to be purchased, it should be done as soon as possible. If the seller is a reseller rather than a manufacturer and does not provide a valid insurance policy upon request by the platform, it will pay the claim compensation on its own.

Should I buy new insurance? Here are the solutions

In the cross-border e-commerce career, sellers are bound to encounter claims. The promotion of Amazon's insurance policy has helped some sellers avoid large losses in such situations.

A seller sold a rechargeable heating pad that caught fire, causing damage to the buyer's bedding, clothing, etc. The seller reported the case to Ping An Insurance, which insured the buyer. Ping An eventually reported the damage to $12,000. The policy had a $10,000 deductible, so the insurance company paid $2,000.

Another seller was sued for selling a treadmill that injured a child. Ping An Insurance verified that the treadmill was used by an adult in the buyer's family, and the buyer did not supervise the child while running. The child crawled to the treadmill and stuck his finger in the gap, causing the finger to be injured. The product photos provided by the seller showed that there was an obvious danger warning sign next to the gap of the treadmill. In the end, the buyer agreed to give up the claim, saving the seller from an unnecessary disaster.

Ping An Insurance is an insurer officially recognized by Amazon. Regarding Amazon's multi-site insurance requirements, the editor learned from Ping An staff that they are currently confirming the specific requirements with Amazon and there are two directions for handling:

1. The original insurance policy directly covers the world (covering both sales areas and sales volume) and meets the requirements of the European site. Sellers do not need to purchase additional insurance policies;

2. If the original policy only covers North America, you need to add the European station to the policy. If sales change, you need to expand sales in Europe, and the premium will increase proportionally.

This move can quickly solve the insurance problem of the newly added sites for sellers. From seller consultation, insurance, to issuing insurance policies and certificates, Ping An can issue orders in as fast as 10 minutes. The certificates issued have passed Amazon's review and cover more than 95% of the products sold on the platform.

Scan the QR code on the poster below, or click "Read original text" to purchase insurance.